Agency & Distribution Agreements
These are forms of commercial agreements and which are often confused. Agents are only intermediaries to the business transaction whereas a distributor will purchase goods from the supplier and sell them on to their own customers.
There are advantages and disadvantages to each (the principal will retain more control in an agency relationship but will be bound by the Commercial Agents Regulations 1993) and so legal advice is often important in deciding which approach to take.
A company preparing to appoint an agent or distributor should understand the various issues involved and certainly be aware of the specific regulations which apply to Commercial Agents.
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